The National-led Government will continue its programme of bold reforms to build a future that will provide more opportunities for New Zealanders, National Leader Christopher Luxon outlined in his State of the Nation speech in Auckland today.
"It's been a tough time for Kiwi households and businesses over the last five years and that's primarily down to high inflation and high interest rates," Mr Luxon says.
"On taking office two years ago, our first priority was to fix the basics in the economy by stopping wasteful spending to help lower inflation and interest rates.
"Since then, inflation has fallen from over 7 per cent to 3 per cent and interest rates have dropped considerably with families now re-fixing from mortgage rates starting with a 7 to rates starting with a 4 or a 5.
"Fixing the basics in education has seen the number of new entrants achieving at the expected level in reading go from 36 per cent to 58 per cent.
"In law and order, simple measures like banning gang patches, tougher sentences for criminals and more Police on the beat have resulted in 38,000 fewer victims of violent crime.
"There is more to do. It is not enough to just fix the basics, but you can't build the future until you've got the fundamentals right.
"It's been two years of hard grind by everyone, but I feel confident now that things are turning around and that recovery has arrived. So, while we will keep our eye on fixing the basics, we can now turn more focus toward building the future.
"We are living in a more volatile world, and New Zealand can't afford to be complacent. That is why we're hustling in the world, talking to different partners and strengthening our defence and economic partnerships. Securing a Free Trade Agreement with India is a result of that hard work, but we won't stop there.
"A more volatile and uncertain world underscores the importance of controlling what we can. We can control the energy and ambition we bring to building a future for every single New Zealander here at home.
"If we're serious about building the future, we need serious reform. That includes reform in three big areas - KiwiSaver, NCEA and the RMA.
"We need to be more ambitious for retirement savings. That's why our Government is lifting the default rate of KiwiSaver contributions for employers and employees from 3 per cent to 4 per cent by 1 April 2028. But National will campaign on going even further, gradually increasing employer and employee contributions to 6 per cent each by 2032 for a combined contribution of 12 per cent.
"Building the future means equipping the next generation with the knowledge and skills they need to be successful as individuals and to contribute to our success as a country. That is why we are replacing NCEA with a new qualification with clearer grades and high standards for literacy and numeracy.
"Reforming New Zealand's planning system to make it easier to build houses and other critical infrastructure like roads, energy projects, hospitals and schools is also key to building the future. We've done a lot in two years to unlock growth and development through things like Fast Track, but our replacement of the Resource Management Act will be the real gamechanger in the long term.
"National is focused on our plan to fix the basics and build the future for all New Zealanders. That plan is working and we need to stick with it so that all New Zealanders can get ahead and have the opportunities they deserve."
